Elon Musk Says He’s Happy to Cancel Unwanted SpaceX Government Contracts

Elon Musk said Friday that he is happy to cancel any SpaceX government contracts the government does not want, while arguing Tesla has none and that SpaceX wins federal work on product and price.

“Tesla has no government contracts and President Trump ended federal incentives for electric vehicles,” Musk wrote. “SpaceX contracts with the government are BOTH the best product AND the lowest price! Moreover government revenue will be less than 10% of SpaceX revenue this quarter and less then 5% a year from now.” He closed: “Happy to cancel any that the government doesn’t want. Just say the word!”

Those lines came as Musk quote-tweeted an X post from Warren Redlich (@WR4NYGov) that floated a draft letter for Musk to send Senate and House Democrats on January 1, offering to cancel federal contracts critics complain about if lawmakers publish a list with any required agency consent. Musk replied “Exactly” and then restated the cancel offer in his own words. He did not say he had already sent that letter, named a contract to cancel, or reported that any award had been terminated.

Government procurement is distinct from consumer EV subsidies and tax credits. Musk addressed both in his post, pairing his claim about Tesla’s contracts with a separate statement about federal EV incentives.

The revenue percentages are Musk’s projections, and his post did not include financial statements supporting them. SpaceX still competes for and wins U.S. launch work; a January award covered $739 million in Space Force missile-defense launches. Last summer, a Wall Street Journal report said a Trump-era review found many SpaceX deals too vital for agencies to cut.

Musk’s offer leaves the next step with Washington: he has offered to cancel unwanted contracts, but has not announced an agreement with any agency to end one.